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Hello. My name is Doug Bloom and I am the worldwide Business Development Manager for the IBM Oracle Alliance. I want to talk to you today about the most exciting offering from IBM in the JD Edwards space in over eight years. As Gary mentioned, IBM and JD Edwards have been collaborating for since 1977 and today’s announcement is proof this collaboration continues today.

IBM and JD Edwards have a long and rich history going back to 1977 when JD Edwards was founded. Since then, IBM and JD Edwards products have evolved, serving thousands of customers. Gary can add more here.

What I want to talk to you about is the new “IBM i Solution Edition for JD Edwards.” I am going to explain what it is, how much it costs, and how you can get one. Let’s start with “what it is.”

The IBM i Solution Edition for JD Edwards EnterpriseOne is an infrastructure solution designed, configured, and priced to best run JD Edwards world-class solutions, including JD Edwards EnterpriseOne and JD Edwards World. On the next few slides I want to focus on the fact that this solution is complete, quick and easy to implement, offers a superior support model when compared to any other platform, is built on IBM’s more Powerful technology, and is the lowest cost platform to run JD Edwards applications..

Let’s first talk about the “Compete” aspects of this solution offering.

I mentioned the System i Solution Edition for JD Edwards is “complete.” This solution is “complete” in that is contains the hardware, software and services necessary to run JD Edwards EnterpriseOne and World software. Let’s talk about each of these solution components.

The IBM i Solution Edition for JD Edwards comes in three flavors, built on IBM’s new Power 720 and 740 server platforms. On this slide we show 720 systems sized and configured to run 50 and 150 JD Edwards users. The 50-user system comes with 6 core, 16 GB of memory, 1.4 TB of storage, a tape drive and a one-core license of IBM I for 50 users. The 150-user system comes with 6 core, 32 GB of memory, 1.7 TB of storage, a tape drive and a two-core license of IBM i for 150 users. The EnterpriseOne Deployment Server is not included in this configuration, but can be added by IBM or your business partner. We also offer a Solution Edition built on the new Power 740 technology. The example on this slide is for 500 users and comes with six Power7 cores, 64 GB of memory, and 32 disk drives for a total of 4.4 TB of disk space. An external fiber card is included as well as four licenses of IBM i. Of course, every customer has different needs, so these are examples of three of the most popular configurations. Through the normal sizing process, memory, disk, and even the number of processor cores, can be modified to meet specific customer requirements. You will notice these systems come with one, two, and four core worth of IBM i, yet the hardware has six Power7 cores. This is a tremendous story for our customers. What this means is there is plenty of head room for growth on these systems as well as space for other applications. As you know, IBM’s Power hardware can run three different operating systems: AIX, Linux, and IBM i, so this Solution Edition for JD Edwards can run a variety of other applications as customer’s require.

I mentioned the IBM i Solution Edition for JD Edwards is complete from a hardware perspective. Now let’s talk about the fact that it is also complete from a software perspective. The IBM i Solution Edition for JD Edwards comes with the operating system, database, web server, and C compiler and other prerequisites needed to run JD Edwards EnterpriseOne. The only other software needed is JD Edwards EnterpriseOne or JD Edwards World, of course.

Now that we have covered the hardware and software completeness of this solution, the story just keeps getting better. Every customer who purchases an IBM i Solution Edition for JD Edwards will receive a voucher that can be used for any of the services offerings shown here. Many of these are specific to JD Edwards such as EnterpriseOne performance tuning, database optimization, integration with Intel hardware, etc. We are also working closely with Oracle to develop something we call “Rapid Install” that will be offered in the coming months. A complete list of services vouchers offerings can be found at the URL shown on the bottom of this slide and additional vouchers are available for purchase from IBM Lab Services.

Let’s turn to the “Quick and easy to implement” aspects of our offering.

Here is a picture of the traditional installation process for JD Edwards EnterpriseOne software. This process typically takes two weeks to complete. It begins with the customer installing their hardware and infrastructure software (database, web server, C compiler, etc.). They then download or load the JD Edwards software from CDs and follow the traditional installation procedures. They then apply ESUs (electronic service updates) and any special instructions. Finally, they test and validate the installation is working properly.

Here is what the process will look like with “Rapid Install.” Using the new “Rapid Install” process, customers will install the most current version of EnterpriseOne including necessary fixes, updates, and ESUs. (electronic support updates) in days instead of weeks. Once installed, the system is ready for you or your implementation partner to customize The entire process is pre-tested by IBM and Oracle making it the fastest and lowest risk installation process possible. IBM and Oracle are currently working now to develop this process and plan to make it available in the coming months.

Customers running their JD Edwards software on IBM i enjoy a unique support paradigm that we refer to as “coordinated support.” We call this “coordinated” because there are JD Edwards-trained support resources within the IBM Rochester Support center and there are IBM i-trained support resources within the Oracle Support centers that work together to resolve customer problems. This coordinated approach reduces finger pointing and results in faster problem resolution. Additionally, IBM has a manager on site at Oracle/JD Edwards who is available to assist with problem escalation and to ensure IBM customers receive the best possible support for their JD Edwards software running on IBM hardware. No other platform or hardware vendor offers this level of support for their JD Edwards customers.

We also have a variety of technical papers written to assist customers in the areas of EnterpriseOne tuning, WebSphere tuning, WebSphere clustering, and more. Many of these have been written jointly by IBM and JD Edwards and are available at no charge from the web site shown.

On the next few slides I want to focus on the fact that this solution is powerful.

The IBM i Solution Edition for JD Edwards is based on IBM’s newest POWER7 chip technology. Because of this, we can run more users, scale higher, and do so at the lowest energy cost of any JDE-capable hardware. .

This slide shows the characteristics in terms of core, memory, etc. for the new Power 720 and 740 platforms on the right and the predecessor Power6 520 and 550 models on the left. You can see much greater flexibility in the new Power7 models. Of particular note is the last line which shows the CPW ratings for each box. CPW is a relative performance measurement for Power servers running IBM i which allows us to compare performance between models. Note the dramatic increase in performance. The Power 550 for instance topped out at 18,000 CPW while the new Power 740 tops our at over 97,000 CPW. The improvement with the Power720 is equally impressive going from 8,300 to over 46,000 CPW

This chart shows the advances in scalability that have been made running JD Edwards World software on IBM POWER4, POWERr5, POWER6, and now POWER7 hardware. Today’s POWER7 hardware can handle over five times more JD Edwards users over older Power4 hardware. For instance, a four-way Power 770 can run approximately 1700 users vs.300 users on an older four-way IBM POWER4 825 server. And even compared with last years Power6 hardware, we can now handle 38% more users on similarly-sized Power7 hardware.

This chart contains actual JD Edwards EnterpriseOne benchmark results recently completed by IBM Rochester on one, two, and four-core Power7 hardware. As you can see, scaling is linear with 300 users on a one-core system, 600 on a two-core system and 1,200 on a four core system. Of course, customer sizings are different than benchmark results because we take into account batch, growth, usage peaks, etc. in our sizing process which reduces the number of users, but these test results confirm our ability to scale linearly as customer needs grow. A complete white paper documenting these tests can be found at the URL shown.

The story is also dramatic from an energy consumption standpoint. Today’s Power7 hardware consumes almost 30 times less energy than did Power 4 hardware ten years ago. And, even compared with Power6, the improvement is approximately three-fold.

Last, but not least, let’s now talk about the cost of these new systems.

To demonstrate the cost competitiveness of the new Solution Edition for JD Edwards, we ran a comparison against a comparably-sized environment on the Windows Intel platform. The IBM i solution was complete as we have dicsussed. For the Intel scenario we chose Microsoft’s SQL Server database and the Oracle Application Server…..both very popular options for this environment. Let’s look at the details of this comparison.

This slide is an example of the cost of acquisition for the various components between two scenarios for a 150 users. As shown in this example, with the new IBM i Solution Edition for JD Edwards pricing, we are now cheaper than the Intel/Windows alternative from a cost of acquisition standpoint. IBM i has always been the lowest total-cost-of-ownership platform, but with this new pricing, we are now the cheaper out of the box! This sample comparison includes the IBM i and Intel hardware, the operating system software, database software which is Microsoft SQL Server in the Intel case, and web server software which is Oracle Application Server in the Intel case. Now let’s look at maintenance.

When we talk about maintenance, this is another area where our story just keeps getting better. On the new IBM i Solution Editions for JD Edwards 720 and 740 models, we are now including a three year warranty! As you can see, the maintenance line item in our example under the JDE Solution Edition is nearly zero. We have included a small up charge for 24 x 7 coverage. This charge is $1,000 on the 720 and $2,550 on the 740 over the three years. With this new announcement, the JDE Solution Edition is now less expensive from both the cost of acquisition and now maintenance aspect.

On this slide, I have brought the acquisition, maintenance, and support costs together. Line one shows the acquisition costs between the two scenarios. Line two contains maintenance. I have added a third line for DBA services we have found the average JD Edwards customer expends to tune and maintain the SQL Server database each month. These costs are minimal, but a few hundred dollars per month. No tuning is required on the IBM i database because of its unique single-level store design which eliminates “hot spots” on the disk drives. I have also added a fourth line in this example to call out the possible need for additional hardware and software licenses to accommodate test and development systems. On the IBM i Solution Edition for JD Edwards, test and development instances can most likely be accommodated using partitioning, while under the Intel scenario, additional hardware and software may be necessary. As shown on the bottom line of this example, over a three-year analysis, the IBM i Solution Edition for JD Edwards cost is $83,940 vs. the Wintel cost of $98,691….. a 15% savings for the JDE Solution Edition scenario. This analysis does not include many other costs such as installation, facilities, and personnel. However, International Technology Group (ITG) recently completed a thorough analysis which included all of these costs for JD Edwards customers running JDE EnterpriseOne on Windows, Linux, and IBM i. Let’s look at their findings..

What we have here are the results of an August 2010 study ITG completed comparing the three-year costs of JD Edwards EnterpriseOne deployment on three platforms: IBM i, Intel / Windows, and Intel Linux. ITG found the IBM i solution to be 47% cheaper over a three year period over Windows and 68% cheaper than x86 Linux. The full report can be found at the URL shown at the bottom of this slide.

In summary, the new IBM i Solution Edition for JD Edwards provides a complete hardware and middleware infrastructure to run your JD Edwards solutions. It is configured properly with from a hardware standpoint-- it contains the database and middleware products needed to deploy JD Edwards --even the C-compiler is included. This new system is built on our brand new Power7 technology making it the most scalable platform in the industry. This new solution comes with a Services voucher to help customers install and tune their system by experts. This new system offers a superior support paradigm including an problem escalation manager on-site at Oracle in Denver, Colorado. And finally, this system is now the lowest cost of acquisition as well as being the lowest total cost of ownership platform in the industry. When you put it all together, who wouldn’t want to run their JD Edwards software on this exciting, new platform.

Let’s now talk about who is eligible to own one of these great new systems.

The IBM i Solution Edition for JD Edwards model 720 can be purchased by any customer who has also done at least $25,000 in JD Edwards business with Oracle. The $25,000 can consist of new/additional JD Edwards software, services, or maintenance. The model 740 requires at least $60,000 in JD Edwards business with Oracle. New or existing JD Edwards customers are eligible.